Saudi Arabia's Q3 GDP Growth Hits 4.8% Driven by Oil and Diversification

Post by : Mara Rahim

Saudi Arabia's GDP recorded a remarkable expansion of 4.8 percent in Q3 2025 compared to the same quarter of 2024, according to data from the General Authority for Statistics (GASTAT). This growth trajectory was bolstered by both oil and non-oil sectors, highlighting the robust performance of the Kingdom's economy. Oil-related activities surged by 8.3 percent, whereas the non-hydrocarbon sectors achieved a growth rate of 4.3 percent. Additionally, government services contributed positively with a rise of 1.4 percent during the same timeframe.

GASTAT emphasized that the non-oil sectors were pivotal in this growth, contributing 2.4 percentage points to the overall GDP increase. Oil activities accounted for an additional 2 points, while net taxes and government services each contributed 0.2 points. Among the sectors, the petroleum refining industry showed the most significant growth at 11.9 percent, followed by crude oil and natural gas activities, which grew by 7.3 percent. Electricity, gas, and water services also experienced an uptick of 6.4 percent, indicative of a positive trend across all sectors.

When adjusted for seasonal changes, Saudi Arabia's GDP grew by 1.4 percent from the previous quarter. Quarter-on-quarter, oil activities experienced a growth of 3.3 percent, while non-oil sectors and government services advanced by 0.6 and 1 percent, respectively. This pattern illustrates sustained progress in economic diversification aligned with the Kingdom's Vision 2030 objectives, which seek to minimize dependence on oil revenues and enhance various economic sectors.

The trade balance for Saudi Arabia demonstrated remarkable improvement as well. Exports surged by 18.4 percent year-over-year and rose by 7.5 percent from the prior quarter. Meanwhile, imports witnessed a growth of 4.3 percent year-on-year, despite a 1.2 percent decline from the last quarter. These statistics spotlight the Kingdom's increasing international trade and the bolstering of economic resilience amidst shifting global markets.

Global organizations have also acknowledged Saudi Arabia's commendable economic standing. Earlier this month, the World Bank revised its growth projection for 2025 from 3.2 to 3.8 percent, thanks to advancements in both oil and non-oil sectors. Similarly, the International Monetary Fund (IMF) updated its forecast for both 2025 and 2026 to 4 percent, reflecting renewed confidence in the nation's economic strategies and developmental path.